1 What is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock? A it is always below the stated value. B. It always equal the par value. Ct always equal the stated value. D.It is referred to as paid-in capital. . QUESTION 2 With regard to stock dividend, which of the following is true? A. The decision to declare a stock dividend resides with the shareholders. B. Transfers a portion of equity from retained earnings to a cash reserve account. C. Does not affect total equity, but transfer amounts between the components of equity. D. Reduces a corporation's assets and stockholders' equity. QUESTION 3 Mena Company was established on January 1. The corporate charter authorized 1.000.000 shares of $10 par value common stock. During the first month of opration, the corporation issued 400 shares to its attorneys in payment of a $7.000 charge for drawing up the articles of incorporation. The entry to record this transaction would include: AA debit to Paid-in Capital in Excess of Par Value. Common Stock for $3,000. B. A credit to Common Stock for $4,000. CA debit to Organization Expenses for $6.000 D.A credit to Paid-in Capital in Excess of Par Value. Common Stock for $4.000. QUESTION S A company has bonds outstanding with a parvalue of $100,000. The unamortized premium on these bonds is $3,500. The company calls these bonds at a price of $102,000, the gain or loss on retirement is: A$1.500 gain. 8. $3.500 loss. C. $3.500 gain. D.$1,500 loss